ajtj99's Market Pulse

[chainik]

<stronger Nikkei and higher rates in Japan indeed should be bearish for US treasuries and US stocks>

AJ, not my idea. The way I understand it: low interest rates here are essential for stock market, and if bonds plunge, stocks will follow. At least in part, the rates are staying low because of the demand for US Treasuries from Japan and other Asian countries. If Japan economy improves and Nikkei enters a secular bull market, the rates in Japan will go up and yen will strengthen. This will offer a reasonable alternative to US Treasuries, demand for them will drop, and rates will go up. This will be bearish for US stocks.

(Laird, is it your thinking as well?)